Indonesia pushes back after Chinese business group complains tougher rules hurt investors

Several ministers in Jakarta have pushed back, saying Indonesia must prioritise sovereignty over its natural resources, while stressing the government remains open to dialogue and has postponed some planned increases in mining taxes and royalties.

The China Chamber of Commerce in Indonesia raised its concerns in a letter to Prabowo listing six main issues it said were hampering foreign investment: sharp tax and levy increases, planned mandatory foreign exchange retention requirements, reduced nickel ore quotas, excessive forestry law enforcement, suspension of major projects and increased scrutiny of work visas.

Established in 2005, the chamber has over 260 members from diverse sectors, including energy, minerals, transport, finance, insurance, electronic information, machinery, chemical, contracting and trade, according to its website.